Sales Tax Instructions

Sales Tax Instructions, 2009
1998 that all purchases by Government departments and organizations should be made
from registered suppliers on payment of sales tax against prescribed sales tax invoices.
These instructions were widely circulated. However, in order to relieve the transitional
problems arising due to the fact that a large number of suppliers were still un-registered
and purchases could not be made by Government departments from registered suppliers,
vide letter dated 13 th March, 1999 (copy enclosed), the various Accounts Officers were
authorized to deduct sales tax from the pending bills received but not paid by 30th April,
1999.
2. Now after lapse of over nearly 2 years, the various Accounts Officers
have again informed that a number of bills are pending due to purchases from
unregistered suppliers. It appears that certain Government departments, despite clear
instructions have still not stopped making purchases from unregistered suppliers. This is
a clear violation of the Cabinet decision.
3. In order to resolve the problem, the Auditor General of Pakistan/AGPR
is advised to ask such suppliers (supplying taxable goods) to first produce sales tax
registration certificates from the respective Collectors of Sales Tax and thereafter the
concerned accounts officers may pass their bills after deducting sales tax due on the bills,
under intimation to the respective Collectors.
4. As regards the suppliers who still fail to produce sales tax registration
certificates, full particulars of such suppliers may be furnished to the Board alongwith the
amounts of the bills and sales tax involved therein. Decision about such category of cases
shall be taken by the Board on receipt of this information.
[Issued by the CBR, Islamabad under the signature of Dr.Ashfaq Ahmed Tunio, Secretary
(ST L&P) addressed to the Accounts Officer (Accounts), office of the Auditor General of Pakistan,
Islamabad. Copy endorsed to all the Collectors of Sales Tax for information and coordination
with the respective Audit/Accounts officers and AGPR Lahore/Karachi/Quetta/ Peshawar
/Islamabad.]
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C.No.1(219)STJ/99-Pt DATED 29 TH JANUARY, 2001
SUBJECT:-
CLARIFICATION REGARDING APPLICABILITY OF THE
ORDERS OF HONOURABLE HIGH COURT PESHWAR M/S
LUCKY CEMENT ETC -–W.P. NOS.1163/ 2000, 1182/2000 AND
1145/2000.
M/s Bestway Cement, Lucky Cement and Nizampur Cement alongwith one of
their dealers/distributors filed the subject writ petitions in the Peshawar High Court,
Peshawar challenging the chargeability of sales tax from their dealers/distributors on the
ground that their supplies being exempt from sales tax under SRO.561(I)/94 dated 9 th
June, 1994, their dealers/distributors are not liable to sales tax on the sale of their
products. The Honourable Court was pleased to direct the maintenance of status-quo vide
their interim order dated 11 th November, 2000.